Calgon Carbon Corporation (CCC) received $1.35 million from the Ohio Third Frontier for the development and commercialization of advanced activated carbons for energy storage. As per the program, Calgon Carbon will focus on developing and manufacturing the first domestic source of activated carbon specifically designed for the ultracapacitor energy storage industry.
Over the long term, Calgon Carbon expects to develop advanced activated carbons for ultracapacitor storage that are both technically and economically superior to the products available today. The global market for ultracapacitors is expected to increase from more than $300 million in 2011 to over $1 billion in 2015.
The Ohio Third Frontier Project is a type of economic development initiative by the State of Ohio to expand research and technology economic development in the state.
Calgon Carbon will collaborate on this project with several Ohio-based organizations – Case Western Reserve University, JME Inc., and Novolyte Technologies – as well as Maxwell Technologies, the world’s leading developer and manufacturer of energy storage and power delivery solutions.
Recently, Calgon Carbon reported a profit of 15 cents per share in the first quarter of 2011 compared with 17 cents in the year-ago quarter. Sales in the quarter increased 20.8% to $124.4 million.
The company expects the margins from Calgon Carbon to continue improving throughout 2011. In 2011, in order to meet customer demand, the company expects to supplement activated carbon that it produces with lower-margin outsourced products.
Calgon will continue to make progress implementing its pricing and reactivation strategies, as a result of which, Calgon anticipates that its Carbon and Service business will improve.
Calgon competes with MeadWestvaco Corporation (MWV) and ITT Water & Wastewater Herford GmbH.
We currently maintain a Zacks #3 Rank (short-term Hold recommendation) on Calgon and a long-term Neutral recommendation.
CALGON CARBON (CCC): Free Stock Analysis Report
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